This is what our fuel levies are used for

Alex Rose-Innes

With petrol prices rising, Solly Msimanga, Democratic Alliance (DA) parliament member in Gauteng and provincial legislature caucus leader said that the fuel levies motorists pay are used to continually bail out state-owned enterprises such as SAA and Eskom.

This leaves a debt of R20 billion which has to be paid to South African National Road Agency (Sanral).  In April this year, the total cost of the general fuel levy, the Road Accident Fund levy and customs and excise taxes, plus the new carbon tax, amounted to R5.63 per litre for petrol and R5.49 per litre for diesel. According to an article in Business Tech in February 2019, on a vehicle with a 50 litre tank, this means that drivers will be paying between R274.50 (diesel) and R281.50 (petrol) in tax, every time they fill up.

Herewith a graph depicting total tax vs the pump prices (published in Business Tech.)

Green: what motorists pay (2003-2017)

Blue: What the actual cost should be without all the added taxes

Fuel increases affect the cost of food and any commodity transported by road – increases to all.

 

 

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